Question
Phillips, Inc. makes two products. Product A has a sales price of $42 and variable costs of $19 per unit. Product B has a sales
Phillips, Inc. makes two products. Product A has a sales price of $42 and variable costs of $19 per unit. Product B has a sales price of $49 and variable costs of $23 per unit. Phillips has noted a bottleneck in its manufacturing process where both products must be completed on the same machine. If Product A uses 1 hour of the bottleneck machine's time and Product B uses 1.5 hours of the bottleneck machine's time, what product would Phillips prefer to make the best use of the machine?
Question 19 options:
| Product B |
| Both will be the same |
| Product A |
| About half Product A and half product B |
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